Purpose of adjusting entries the president of crown

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119) Purpose of adjusting entriesThe president of Crown Construction was informed that the first quarter financial statements would be available "as soon as the adjusting entries are made." Being a non-accountant, the president feels adjustments should not be necessary if the accounting department is operating in a competent manner. Does the need for adjusting entries at the end of the quarter imply that transactions are not being recorded properly? Explain.120) Adjusting EntriesIdentify four types of timing differences between cash flows and the recognition of expenses or revenues that may require adjusting entries. Give an example of each.121) Accounting terminologyListed below are nine technical accounting terms emphasized in this chapter:Each of the following statements may (or may not) describe one of these technical terms. In the space provided below each statement, indicate the accounting term described, or answer "None" if the statement does not correctly describe any of the terms.________ (a.) An account with a credit balance that is an offset against an asset account.________ (b.) A contra-account.________ (c.) A liability to customers who have paid in advance.________ (d.) The estimated current value of an asset.________ (e.) Entries made to achieve the goals of accrual accounting when revenue or expense transactions span more than one accounting period.________ (f.) An asset that will expire shortly.________ (g.) Revenue that has been earned, but not yet received.122) Adjusting entriesSelected ledger accounts used by Cross Country Truck Rentals, Inc. are listed along with identifying numbers. Following this list of account numbers and titles is a series of transactions. For each transaction, you are to indicate the proper accounts to be debited and credited.
123) Adjusting entriesSelected ledger accounts used by American Advertising, Inc., are listed along with identifying numbers. Following this list of account numbers and titles is a series of transactions. For each transaction, you are to indicate the proper accounts to be debited and credited.124) End-of-period adjustments - selected computations
Allied Architects adjusts its books each month and closes its books at the end of the year. The trial balance at January 31, 2018, before adjustments is as follows:The following information relates to month-end adjustments:(a) According to contracts, consulting fees received in advance that were earned in January total $13,500.(b) On November 1, 2018, the company paid in advance for 5 months' advertising in professional journals.(c) At January 31, supplies on hand amount to $2,250.(d) The equipment has an original estimated useful life of 4 years.(e) The corporation is subject to income taxes of 25% of taxable income. (Assume taxable income is the same as "income before taxes.")125) End-of-period adjustmentsWest Laboratory adjusts and closes its accounts at the end of each month. The trial balance at September 30,2018, before adjustments, is as follows:
The following information relates to month end adjustments:(a) Office supplies on hand September 30 amounted to $500.(b) The useful life of the medical equipment was estimated to be 20 years.

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